Citizens’ Charter

OUR KEY COMMITMENTS TO CUSTOMERS:

make sure that our documents and procedures are clear and not misleading and that you are given clear information about our products and services;

give you clear information on the product or service chosen by you i.e. about how it works, the terms and conditions and the interest rates which apply to it;

help you use your account or service by sending you regular statements (where appropriate) and we will keep you informed about changes to the interest rates, charges or terms and conditions;

deal quickly and sympathetically with things that go wrong by correcting mistakes quickly, handling complaints quickly and reversing any charges applied in error;

treat all your personal information as private and confidential;

publicize our Citizens’ Charter, have copies available and make sure that our staff are trained to put it into practice.

We expect our customers to

help us meet the ‘Know Your Customer (KYC)’ guidelines at the time of making application for deposits or loans (eligible institutions);

take precautions that are indicated for protection of their accounts;

Avail services like e-Payment system, as offered by Bank;

Avail nomination facility for their accounts;

Not to introduce any person not known personally for the purpose of opening account;

Pay service charges for return of cheques, remittances, collections, etc.

Provide valuable feedback on our services so as to enable us to correct our mistakes and improve our customer service.

1. Background
1.1 The National Housing Bank (NHB) was set up on July 9, 1988 under the National Housing Bank Act, 1987 as the Apex level institution for housing finance. The Preamble of the National Housing Bank Act, 1987 describes the basic functions of the NHB “...as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support to such institutions and for matters connected therewith or incidental thereto ...”.
1.2 There are several activities which are undertaken by the Bank under its Charter. NHB’s activities are multi-dimensional. NHB is also a policy making institution for the housing finance sector and Regulator for Housing Finance Institutions (HFIs). The Bank also assists the Government and its various arms in formulation of policies at the Centre and the State levels.
1.3 NHB's policies have focused on developing a sound and sustainable housing finance system to serve all segments of the population particularly the low and moderate income households. NHB, under its Charter also recognises the need for addressing the housing shortage in the informal sector. The Bank does not deal directly with the members of the public except in cases of deposit instruments. NHB has directed its efforts and focus on creating an enabling environment for sustainable operations and services by the specialised entities (Housing Finance Institutions). The Bank's programmes and initiatives have resulted in larger flow of credit to all sections of society, including rural, low and moderate income groups.
NHB's Vision and Mission Statements are furnished below.2. Vision
"Promoting inclusive expansion with stability in housing finance market."3. Mission
To harness and promote the market potentials to serve the housing needs of all segments of the population with the focus on low and moderate income housing.4. Organisation
4.1 NHB is wholly owned by Reserve Bank of India, which contributed the entire paid-up capital of the Bank. The general superintendence, direction and management of the affairs and business of NHB vest, under the Act, in its Board of Directors. NHB is a lean, officer oriented, professionally managed institution with its headquarters in Delhi and offices in Mumbai, Ahmedabad, Bengaluru, Bhopal, Chennai, Kolkata and Hyderabad. It has 102 officers at different levels (as on June 30, 2016 upto scale – VII). Besides 102 officers, there is one CVO who has been posted by Govt. of India on deputation, two Executive Directors and one MD & CEO. NHB is committed to serving its mandate through its lean cadre of officers working in a professional environment with a focus on innovation, contemporary work practices and extensive technology related culture. Currently, the Bank has the following Departments/ Work Areas:

Department of Regulation and Supervision

Refinance Operations Department

Project Finance and Technology Promotion Department

Resource Mobilization and Management Department

Risk Management Department

Business Planning and Promotion Department

Market Research, Consultancy and Policy Department

Credit Guarantee Fund Trust Cell

Information Technology Department

Legal Department

Administration, HR and Premises Department

Accounts Department

All Audits Department

Board and CMD Secretariat

5. Functions
The main functions of the Bank include promotion and development, financing, and regulation & supervision. The Bank intends to perform these functions in a mutually synergistic and harmonised manner, in the best interest of Public Policy and public programme, acting under the provisions of the NHB Act. The Bank's policies and activities are also targeted at institutional development and financing of the sector with the objective of increasing home ownership in the country.5.1 Promotion and Development
The principal mandate of the Bank is to promote housing finance institutions to improve/strengthen the credit delivery network for housing finance in the country. The Bank plays a central role in the growth of dedicated housing finance institutions and provides financial support to them. As part of its promotional role, NHB has also formulated a scheme for equity participation in housing finance companies. In order to build up the capacity of the lending institutions, NHB organises training and capacity building programmes for banks and housing finance institutions. As part of its policy formulation and promotional agenda, NHB undertakes and promotes research and development activities, conduct of surveys, data mining, constructing residential indices and disseminating information on related activities to the large community of stakeholders and market participants including the individuals. 5.2 Regulation and Supervision
The NHB issues regulatory directions to the Housing Finance Companies (HFCs). The Bank also supervises the HFCs through entry level registration, prescription of guidelines, monitoring of compliances, regulatory co-ordination and consumer interface. In this regard, the Regulation and Supervision Department of the Bank issues directions, guidelines, circulars to Housing Finance Companies and supervises them through onsite inspections and off-site surveillance. The Bank has issued customer related guidelines for the HFCs which include KYC (Know Your Customer) Guidelines and Fair Practices Code (FPC). Through its regulatory and supervisory role, NHB seeks to develop the housing finance system, through the HFCs, on sound and sustainable lines so that the credit delivery service to the citizens at large is maintained and efficiently performed. 5.3 Financing
5.3.1 The clients of the NHB include the Primary Lending Institutions (PLIs), viz., Housing Finance Companies, Commercial Banks, Regional Rural Banks and Cooperative Sector financing Institutions.
5.3.2 NHB offers 100% refinance assistance in the form of term loans for upto 15 years with various options to the PLIs of fixed or floating interest rates, for housing loans given to individual borrowers. It has also initiated special schemes for economically weaker sections and lower income groups, slum redevelopment projects, housing in rural areas as well as areas affected by natural calamities. The refinance assistance given through the Refinance Operations Department of the Bank is secured inter-alia by book debts, mortgages and guarantees.
5.3.3 Direct financing for a period of 1 to 10 years are extended to a range of borrowers both in the public and private sector (under Joint Ventures and Public Private Partnerships). The project finance is secured depending on the agency or the project either through mortgage, charge over receivables, bank or government guarantee, the hypothecation of the property or any other security acceptable to NHB. NHB gives the option of fixed or floating interest rates. The Bank has developed its own Internal Credit Rating Model for the purpose of determining the exposure and the lending rates for its clients. Direct Finance assistance is provided to the Public Housing Agencies (State Housing Boards and development authorities) and Micro Finance Institutions through the Project Finance Department of the Bank.6. Details of ‘Clients’ and ‘Customers’6.1 Clients (availing financial assistance from NHB) –
i. Primary Lending Institutions (PLIs):Housing Finance Companies;Scheduled Commercial Banks;Urban Co-operative Banks;Regional Rural Banks; andApex Cooperative Housing Finance Societies.
ii. Direct Finance to Agencies:a. Public Agencies, the agencies incorporated under the enactments of the Central or State legislatures or under the Companies Act, 1956 such as:

State Housing Boards/Improvement Trusts

State Slum Clearance Boards/Authorities

Development Authorities

Municipal Corporations/Councils

Local Authorities for Housing & Urban Development

Public Sector Companies for employee housing projects

Agencies set up or notified by Government for Specific Housing Programmes (e.g. Earthquake rehabilitation etc)

b. Microfinance Institutions/Self Help Groups/NGOs/Societies registered under the Societies Act, 1860 and Section 25 companies under the Indian Companies Act, 1956 c. Joint Ventures and Public Private Partnerships6.2 Customers (our depositors) –i. Individual/ HUF/Societies and Trusts / Partnership Firms /Association of Personsii. Housing Finance Companies7. Statement of Services
7.1 NHB seeks to provide adequate and satisfactory services to its clients and customers. The Bank has an active communication channel with its clients with a view to promptly deal with instances of complaints/ grievance and redress the same. NHB also practices the culture of encouraging its customers and clients to promptly report to us regarding any deficiency in service or gaps in our dealings. The terms and conditions of financial assistance and the procedure for availing the same along with contact details are placed on our website.
7.2 The Bank offers financial assistance in respect of individual housing loans (through its refinance schemes) as well as project loans through direct assistance. The Bank also extends technical service and guidance to the client institutions and user groups in formulating their projects and preparing cases for availing the services of NHB.
7.3 NHB has adopted Fair Lending Practices Code, approved by its Board for the above activities and the same is also available on the Bank’s Website. For the purpose, the Bank has appointed a designated senior officer as Grievance Redressal Officer (name placed on the website) for resolving issues/complaints against NHB from its Clients, if any. The Bank has constituted a Customer Service Committee, which reviews the system, and the status of customer service by NHB through its different departments.
7.4 NHB is currently operating three deposit schemes, viz. NHB Sunidhi Term Deposit Scheme, NHB Suvriddhi (Tax Saving) Term Deposit Scheme, and Special Term Deposit Scheme for HFCs. The details of the schemes, rate of interest and other terms and conditions along with contact details are placed on our website (http://www.nhb.org.in/Deposit_Scheme/Deposit_Schemes.php) and any change is promptly notified.8. Grievance Redressal Mechanism
8.1 The Bank has put in place an internal Grievance Redressal Mechanism for its customers and clients. The Bank’s customers, borrowers, depositors and members of general public can forward their complaints/issues against the Bank, if any, to the Grievance Redressal Officer for their redressal. The Grievance Redressal Officer would take all necessary steps to redress and resolve the grievance/issue, preferably within a period of 30 days. In case the complainant is not satisfied with the redressal of her/his grievance, she/he may prefer a reference to the Chairman & Managing Director for appropriate action. Further, a Senior Officer has been designated as Compliance Officer for Centralized Public Grievance Redress And Monitoring System (CPGRAMS), who monitors the grievances under the system.NHB has appointed following officer as Chief Grievance Redressal Officer for resolving issues/complaints against NHB, if any:
Shri Sriram Kalyanaraman,
Managing Director & CEO
National Housing Bank,
Core 5A, 5th floor,
India Habitat Centre, Lodhi Road,
New Delhi – 110 003
Telephone: 011-24642722Particulars of present MD & CEO of NHB are as under:

8.2 In terms of Section 5(1) of the Right to Information Act, 2005, NHB has appointed two senior executive as Central Public Information Officers and alternate Central Public Information Officer for the Bank. Further, the Bank has also appointed the Executive Director as Appellate Authority. In pursuance of the Central information Commission’s directive dated 15-11-2010, the Bank has also appointed another senior executive as the ‘Transparency officer’. The details of the above officers and authority are available at the Bank’s website under the ‘Right to Information’ page.The details of the Transparency Officer are as under:
Shri R. S. Garg
Executive Director
National Housing Bank
Core 5A, India Habitat Centre
Lodhi Road
New Delhi 110 003
Telephone 24649043 E-Mail Id – rsgarg@nhb.org.in
8.3 As a part of its regulatory and supervisory role, Bank has formulated model guidelines on Fair Practice Code for HFCs to adopt with the approval of their Boards and also appoint Grievance Redressal Officer for their own organisations. The Code seeks to promote transparent and fair practices by setting standards in dealing with customers, increase transparency so that the customers can have better understanding of what he/she can reasonably expect of the services. The NHB encourages healthy operation of market forces, consistent with the policies and signals of the Government and other relevant authorities, so that the benefits of competition are available to the people in the true spirit of the policies. NHB also encourages the regulated entities to work towards achieving higher operating standards, promoting fair and cordial relationship with their customers and offering them market related opportunities and choice. In public interest, NHB has instructed the HFCs to adopt and adhere to the FPC, as approved by their Board, and make their customers aware about the same through their website and branch level awareness programmes. Further, persons aggrieved by HFCs can also write to NHB for redressal of their grievances. The Bank's internal Complaint Redressal Cell receives the complaints and deals with them. NHB receives complaints from HFCs’ customers either directly or through Government of India/Reserve Bank of India/Ombudsman and other sources. These complaints are processed and taken up with concerned HFCs for suitable redressal. Follow-up is made with HFCs in close coordination with the complainants.
8.4 Age-wise analysis of complaints are processed by the Bank and placed before the Board at half-yearly intervals for review and monitoring at the highest level. The form for filling up the complaints is provided and the Bank encourages the aggrieved Clients/Customers to use the form or contact the Bank directly. If the complainant still feels unsatisfied with the responses received, he/ she can address the complaint to the Bank’s Nodal Officer at Head Office of the bank designated to deal with complaints/ grievances giving full details of the case at the below mentioned address:
Dr. Sanjeev Sharma
Executive Director
National Housing Bank
Core 5A, India Habitat Centre, Lodhi Road
New Delhi 110 003
Telephone: 011- 24647983E-Mail Id – sanjeevsharma@nhb.org.in
8.5 After exhausting all the above machinery / channels, if the client/ customer is not satisfied, he/she may write to Chairman & Managing Director of NHB and even after this, if he/she is not satisfied, he/she is free to take recourse to the following:

Copies of the Citizens’ Charter will be available on request to all our customers at our Regional Offices and Regional Representative Offices and at our web site. We will ensure that all our staff members are aware of the commitments contained in these documents and faithfully implement them.

This is not a legal document creating rights and obligations. The charter has been prepared to promote fair practices and to give information in respect of various activities relating to the Bank's business in terms of its Charter and service to the citizens of the country.